Mortgage rates are higher today across the board. Here’s what they look like on November 18, 2021:
30-year mortgage rates
The 30-year average mortgage rate today stands at 3.307%, up 0.020% from yesterday. At today’s rate, you’ll pay principal and interest of $ 439.00 for every $ 100,000 you borrow. This does not include additional expenses like property taxes and home insurance premiums.
20-year mortgage rates
The 20-year average mortgage rate today is 3.009%, up 0.024% from yesterday. At today’s rate, you’ll pay principal and interest of $ 555.00 for every $ 100,000 you borrow. Although your monthly payment increases by $ 116.00 with a loan of $ 100,000 over 20 years compared to a loan of the same amount over 30 years, you will save $ 24,654.00 in interest over your repayment period for every $ 100,000 you borrow.
15-year mortgage rates
The 15-year average mortgage rate today stands at 2.545%, up 0.015% from yesterday. At today’s rate, you’ll pay principal and interest of $ 669.00 for every $ 100,000 you borrow. Compared to the 30-year loan, your monthly payment will be $ 230.00 higher for every $ 100,000 of mortgage principal. However, your interest savings will amount to $ 37,506.00 over the duration of your repayment period per $ 100,000 of mortgage debt.
The average 5/1 ARM rate is 3.042%, up 0.107% from yesterday. An ARM 5/1 may interest you because it will allow you to lock in a lower interest rate than a 30-year fixed loan, at least initially. But once you get past the first five years of your repayment period, the interest rate on your loan could go up. Make sure it’s a risk you’re willing to take in return for some upfront savings.
Should I lock in my mortgage rate now?
A mortgage rate freeze guarantees you a specific interest rate for a certain period of time – typically 30 days, but you may be able to guarantee your rate for up to 60 days. You’ll usually pay a fee to lock in your mortgage rate, but that way you’re protected if rates go up by the time your mortgage closes.
If you plan to close your home in the next 30 days, it pays to lock in your mortgage rate based on today’s rates, especially since they are quite attractive, historically speaking. But if your close is more than 30 days away, you might want to choose an adjustable rate lock instead for what will usually be a higher fee, but could save you money in the long run. A variable rate lock allows you to get a lower rate on your loan if rates drop before your mortgage closes. While the rates today are quite low, we don’t know if the rates will go up or down in the next few months. As such, it is beneficial to:
- LOCK if closing 7 days
- LOCK if closing 15 days
- LOCK if closing 30 days
- FLOAT if closing 45 days
- FLOAT if closing 60 days
If you are ready to apply for a home loan, shop around with the various mortgage lenders before accepting an offer. A lender may offer you a better rate or lower closing costs to finalize your mortgage, so get some quotes before you make a final decision.